GROWGENERATION CORP (OTCMKTS:GRWG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On April 3, 2017, GrowGeneration, Corp. (the Company) entered
into a consulting agreement (the Consulting Agreement) with
Merida Capital Partners, LP (Merida) in connection with a private
offering of the Companys securities in March 2017 in which Merida
acted as the lead investor. to the Consulting Agreement, Merida
was engaged by the Company on a non-exclusive basis to provide
services of general business consulting and board oversight to
the Company.
As consideration for the services to be provided by Merida, the
Company agreed to pay Merida (a) a cash fee of $60,000 per annum,
payable quarterly, for 3 years; (b) 80,000 shares of the Companys
common stock; and (c) 5 year warrants to purchase 150,000 shares
of the Companys common stock at a price of $2.75 per share.
Within 30 business days of the effective date of the Consulting
Agreement, the Board of Directors (the Board) of the Company
shall appoint a designee of Merida to the Board, and during the
term of the Consulting Agreement shall nominate the designee of
Merida for election as a director of the Company in shareholder
meetings held for the purpose of electing directors.
The foregoing descriptions of the terms of the Consulting
Agreement do not purport to be complete and are qualified in its
entirety by reference to the full text of the form of the
Consulting Agreement filed herewith as Exhibits 99.1.
Section 7 Regulation FD
Item 7.01. Regulation FD Disclosure
On April 5, 2017, the Company published a press release regarding
the Consulting Agreement.
A copy of the press release is attached hereto as Exhibit 99.2.
The information contained in this item and Exhibit 99.2 attached
herewith shall be deemed furnished and not filed.
Section 9 Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
| ExhibitNo. | Description | |
| 99.1 |
Form of Consulting Agreement with Merida Capital Partners, LP, dated April 3, 2017 |
|
| 99.2 | Press Release, dated April 5, 2017 |
About GROWGENERATION CORP (OTCMKTS:GRWG)
GrowGeneration, Corp. operates retail hydroponic and organic specialty gardening retail outlets. The Company owned and operated a chain of approximately eight retail hydroponic/gardening stores located in the states of Colorado and California at November 9, 2015. The Company is also engaged in the development of a branded e-commerce portal at www.GrowGeneration.com. The Company’s stores offer supplies to the hydroponic and gardening industry, including medium (farming soil), hydroponic equipment, lighting, plant nutrients and various additional products used by professional growers and specialty cultivation operations. The Company’s target market segments include home growers of organic vegetable and fruit growers (small farms, home garden growers, restaurants growers and farmer markets), the do-it yourselfers (home flower and plant growers, or mass market and growers in the cannabis related market (dispensaries, cultivators and caregivers). GROWGENERATION CORP (OTCMKTS:GRWG) Recent Trading Information
GROWGENERATION CORP (OTCMKTS:GRWG) closed its last trading session up +0.05 at 2.10 with shares trading hands.